Risk Measures
Cost of Funding
Pricing Multiples
1.
Beta
1.
Cost of Equity
1.
PE &PEG
2.
Standard deviation in stock price
2.
Cost of Debt
2.
Price to Book & EV to Inv Capital
3.
Regression statistics (R squared, Jensen's alpha)
3.
Cost of Capital
3.
EV/EBIT and EV/EBITDA
4.
High-Low Price Risk Measure
4.
EV/Sales and Price/Sales
Profitability
Financial Leverage
Cash Flow Add-ons
1.
Net Profit Margin
1.
D/E ratio & Debt/Capital
1.
Cap Ex & Net Cap Ex (including acquisitions & R&D)
2.
Operating Margin
2.
Debt/EBITDA
2.
Non-cash Working Capital as % of Revenue
3.
Gross Margins
3.
Interest Coverage Ratios
3.
Sales/Invested Capital
4.
EBITDA, EBIT and EBITDAR&D Margins
4.
Accounting lease debt vs my estimates
4.
COVID effects on market cap and earnings
5.
Tax rates (cash, effective)
5.
Debt breakdown (term, type)
Returns
Dividend Policy
5.
R&D
and
Goodwill
statistics
1.
Return on Equity
1.
Dividend Payout & Yield
6.
Financing flows from debt/equity
2.
Return on Invested Capital
2.
Dividends/FCFE & (Dividends + Buybacks)/ FCFE
Growth
3.
ROE – Cost of Equity
Corporate Governance
1.
Historical growth in earnings & revenues
4.
ROIC – Cost of Capital
1.
CEO, Insider and Institutional Holdings
2. Sustainable growth in
earnings per share
and
operating income